Victoria Extends Stamp Duty Concession for Off-the-Plan Buyers Until October 2026

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Stamp Duty Concession Extended—But Should You Buy Off-the-Plan?

The Victorian Government has extended its off-the-plan stamp duty concession until October 1, 2026, giving buyers of new apartments and townhouses the opportunity to save tens of thousands in transfer duty. The extension forms part of a broader policy aimed at improving housing supply and encouraging new construction starts across Melbourne and key regional centres.

But as we’ve explored in our article Should You Buy a New Build or an Established Property?—there’s more to consider than just a lower duty figure.

What Does the Concession Offer?

In an off-the-plan purchase, stamp duty is calculated on the value of the land and any completed construction as at contract date—not at final settlement. This often reduces the dutiable value to 60–70% of the purchase price.

For example, a $620,000 off-the-plan apartment may attract duty on only $400,000 worth of value, equating to a potential saving of over $28,000.

First-home buyers can combine this concession with grants and discounts—but eligibility criteria must be carefully followed, and conveyancing advice is critical.

Should You Jump at the Chance?

The answer is: not always.

As discussed in our earlier piece, new properties often come with risks that aren’t present in established homes. These include:

  • Construction delays and sunset clause extensions

  • Variations in final layout or finish

  • Defects and unresolved warranty issues

  • Developer insolvency or poor workmanship

The lower stamp duty is attractive—but it shouldn’t override sound judgment about whether the property itself is right for your needs.

Who Will Benefit Most?

The concession is designed to benefit:

  • Owner-occupiers and investors buying new dwellings

  • Developers needing pre-sales to unlock project finance

  • First-home buyers seeking a foot in the door with lower upfront costs

It's also intended to help the State stimulate supply as it faces ongoing rental shortages, population growth, and inflationary construction pressures.

But the devil is in the detail—so careful review of the contract, building timeline, and body corporate setup is essential.